Though starting of as an offshoot of Fintech, RegTech has applications beyond financials services in regulated industries such as education, agriculture, law and more.
The Industry is being driven by increasing regulatory burden and technology innovations.
Australia dominates the Asia Pacific region, and is seventh in the world in terms of RegTech deal activity.
RegTech stands for ‘regulatory technology’ – namely, technology which assists users in complying with regulation in real-time and preventing the emergence of regulatory issues ahead of time.
The RegTech Association, an Australia-based industry association with an increasingly international membership and an ambition to represent the global RegTech space, emphasises that RegTech has a broader remit than just financial services. For many, RegTech is seen as a sub-section of the Fintech, but those within the space are keen to point out that RegTech has applications across a much broader range of industries, in the same way that efficiently complying with regulation is an imperative in an extremely broad range of industries. The terms are defined as below:
RegTech: an enabler and accelerator that solves regulation and compliance challenges – industry agnostic and able to be applied to any regulated vertical.
Fintech: generally, refers to disruptive technology that challenges traditional financial services.
SupTech (Supervisory Technology): Part of the RegTech family, in its monitoring and supervisory capacity.